The Expert Podcast

• Ford's Dominance in the Truck Market: Ford F-series trucks continue to lead in sales due to their wide range of models compared to competitors like Ram and Chevy/GMC.
• Challenges Facing the Truck Market: The landscape is shifting with the introduction of electric and hybrid trucks, such as Rivian, Tesla's Cybertruck, and Ford's Lightning. This new wave of EV trucks could disrupt traditional truck sales.
• Truck Market Outlook:
  • For professionals (contractors, builders) needing reliable work vehicles, how will these changes affect the options available to meet their business requirements?
  • For consumers who use trucks primarily for personal utility, what alternatives are they considering, like the rugged yet smaller Jeep Gladiator?
• Shift to SUVs: Many former truck owners are moving toward SUVs, seeking enclosed cargo space rather than the open bed offered by traditional trucks.
• Changing Demographics and Truck Design: Manufacturers are adapting to evolving buyer demographics, which will impact the types of trucks and features offered in the future.
• Future of Vehicle Design: Current designs rolling out in the next five years are projected to be on the market by 2027-2028, with considerations for stricter emission regulations as some states move toward banning gasoline vehicle sales by 2030.
• The Evolving Role of Pickup Trucks: With EVs and changing consumer needs, manufacturers may rethink the traditional high-volume production of truck models and body styles.

Let us know your thoughts! Share what features you value most in a truck and if you're considering an EV or hybrid as your next purchase.

Title: Alert: Consumers Clamoring for American Car Center Titles – What You Need to Know

Summary:

• The Crisis: American Car Center, a major auto dealership, has closed its doors, leaving thousands of customers without car titles after paying off their loans. This is a growing problem for buyers who relied on buy here, pay here financing.
• How It Happens: Customers who made payments directly to the dealership are entitled to their titles once the full loan is paid off. But when the dealer goes out of business, these titles are often never issued.
• Scope of the Problem:
  • With 40 dealerships across 10 states, American Car Center sold thousands of cars. Now, up to 100,000 vehicles may be at risk of title issues, with buyers unable to get their titles after making full payments.
• What You Can Do if You’re Affected:
  • Take Action Immediately:
    • Seek legal advice and contact an attorney for guidance.
    • File for a court order title, magistrate title, or civil lien title—a legal process that allows you to claim ownership of the car.
    • Check with your state’s titling division to see if a victim’s restitution fund is available for assistance.
  • Why Timing is Critical: Start the process right away to avoid complications. States may have limited funds available to help, so being early in line is important.
• The Impact: With all employees at American Car Center laid off and operations shut down, customers face further delays in retrieving their titles. It’s crucial to act fast to prevent losing out on the car and payments made.

Key Takeaway:

• If you're affected by the closure of American Car Center or any dealer that goes out of business, take swift legal action to protect your rights and secure your car’s title.

Listen to the full episode for more details on how to navigate this issue and protect your purchase.

Growing Popularity of Used EVs

• Electric vehicles (EVs) are becoming a more prominent part of the used car market.
• New EV sales have crossed 10% of total new car sales, fueling the demand for used EVs.

Price Reduction and Increased Availability

• The price point for used EVs is starting to drop due to more availability and higher volume in the market.
• Many people looking to purchase an EV now have more affordable options compared to new EVs, which often cost $50,000–$60,000 or more.

Challenges with Previously Limited Inventory

• Previously, there were fewer used EVs available, and the ones that were on the market were priced high.
• As more used EVs enter the market, it’s becoming easier to find a more reasonably priced option.

The Future of Used EV Sales

• The percentage of used EV sales is expected to grow faster than new car sales as gas-powered cars become less desirable.
• The expansion of charging networks will further drive the adoption of used EVs.

Why You Should Consider a Used EV

• If you’ve been eyeing a new electric vehicle but find the prices out of reach, consider checking with your local dealer for used EV inventory.
• You may find a great deal on a used EV without the hefty price tag of a new car.

Key Points:

• Used car values have stabilized, and more used cars are entering the market.
• Tesla models are depreciating faster than other car brands.
• If you're looking for an EV or used electric vehicle, a Tesla might be a great option due to its lower price compared to other brands.
• Despite the drop in prices, Tesla is still seen as a high-quality car and the benchmark for electric vehicles (EVs).
• This price drop could be an "Arbitrage play," meaning you get more car for your money with Tesla compared to other brands.
• The relationship between new and used car prices:
  • New car prices impact used car values for the same brand.
  • New Teslas are being discounted, which affects used Tesla prices.
  • Tesla's cheaper production line and long history help them reduce new car prices more than other manufacturers.
• As new Tesla prices drop, used Tesla values may be more affordable than comparable models from other brands.
• If you're considering a used EV or hybrid, a Tesla could be a good option, but make sure the car suits your needs.

Important Reminder: Always ensure the car fits your preferences and requirements before making a purchase.

Overview:

• A long-standing, underhanded tactic used by car dealerships is resurfacing: the bailment agreement, also known as "yo-yo" or "be-back" deals.
• This tactic can put your car purchase at risk, potentially forcing you to pay more money or return the car after you’ve already driven off the lot.

How It Works:

• Dealerships may offer a spot delivery, where you drive the car off the lot immediately, while the dealership works to secure financing.
• If the financing doesn’t come through as expected, you may be forced to return the car, pay a higher amount, or even accept a different car altogether.
• The bailment agreement gives the dealership the right to reclaim the car if financing fails, with the promise to refund your money and undo the transaction.

Why This Is Happening Again:

• While this tactic was out of favor for a while, it’s reappearing in the news and industry discussions, such as in a Jalopnik article and a Steve Lato YouTube video.
• Dealers use this tactic to avoid financing risks and maximize profits from loan kickbacks.

How to Avoid This Trap:

• Don’t sign a bailment agreement if you haven’t secured final approval for financing.
• Wait until financing is fully confirmed before taking the car home, even if the dealer pressures you to drive it away immediately.
• Leverage your position by not signing any deal unless the terms are finalized, and ask the dealer to call you once they have approval.

Real-Life Example:

• A customer avoided a potential yo-yo deal by not accepting a spot delivery and waiting until the financing was finalized.
• The dealership made a mistake in their calculations and would have had to call the customer back for a higher payment, but because the deal wasn’t finalized, the customer had the upper hand.

Key Takeaway:

• Always ensure the deal is fully committed with finalized financing before driving off the lot.
• Avoid bailment agreements that give the dealer leverage to change terms after you’ve already taken the car home.
• If a dealership insists on a bailment agreement or changes the terms after you’ve agreed to a deal, walk away. There are plenty of other cars and dealerships that will offer fair, transparent deals.

Episode Show Notes / Description:

• If you have a vehicle with a title problem, you've probably heard of various methods online for obtaining a title, such as the Vermont loophole, abandoned vehicles, and mechanic's liens.
• In this episode, we'll discuss why some of the information you may have heard online could be misleading, and why certain methods could get you into trouble.
• Key topics covered:
  • Vermont Loophole:
    • How the Vermont loophole works, and why it's been an urban legend for over 20 years.
    • The process of getting a Vermont registration and using it to obtain a title in your state.
    • The issues with this loophole, such as high tax rates, potential resistance from DMVs, and fraud concerns in certain states like Florida.
    • Example: Florida's fraud alert on Vermont registrations and additional documentation requirements.
  • Bonded Title:
    • What is a bonded title, and how it works in states like Florida.
    • Eligibility requirements and restrictions for bonded titles.
    • The pros and cons of using this method compared to the Vermont loophole.
  • Court Order Title:
    • An alternative to dealing with DMV restrictions: the court order title process.
    • How to petition for a court order title, the required documentation, and how it bypasses DMV regulations.
  • Mechanics Liens:
    • Why private citizens cannot file for a mechanic’s lien and what this process really involves.
    • The complexities of filing a mechanics lien and the requirements for a licensed automotive facility.
  • Abandoned Vehicle:
    • The truth behind claiming an abandoned vehicle.
    • Why finding an abandoned vehicle does not give you legal ownership, and the process involved in declaring a vehicle abandoned.
• What you can do instead:
  • We'll share safer, legal methods to obtain a title without falling for scams or loopholes that could put you in jeopardy.

Tune in for the full breakdown of title myths and the best solutions for getting your vehicle title legally and safely.

Episode Show Notes:

• California’s Aggressive Push for EVs:
  • California is a leader in promoting the use and sale of electric vehicles (EVs).
  • The state offers one of the most generous EV rebate programs in the country, in addition to federal electric vehicle rebates.
  • This initiative has resulted in a 19% increase in zero-emission vehicle sales.
• Challenges with the Rebate Program:
  • Success in EV sales is causing a problem: the rebate program is running out of funds.
  • California’s rebate program was budgeted for a certain amount, but with rising sales, the allocated money is quickly depleting.
  • The state may have to consider alternatives like increasing the rebate fund, reducing the rebate amounts, or cutting off rebates once the money runs out.
• Rebate Availability:
  • California’s EV rebate program operates on a first-come, first-serve basis.
  • When the money runs out, those who purchase an EV last may not receive a rebate, leaving some buyers without financial assistance.
• Rebate Process and Eligibility:
  • The California Air Resources Board provides a guide to apply for rebates.
  • Eligible vehicles include hydrogen fuel cell vehicles and battery electric vehicles from brands like Audi, BMW, Ford, Hyundai, Kia, and Mercedes.
  • Most EVs qualify for a $2,000 rebate, while plug-in vehicles get a $1,000 rebate. Hydrogen fuel cell vehicles receive a higher $4,500 rebate.
• Impact of Depleted Funds:
  • The biggest question remains: what happens when the rebate funds run out?
  • Will the state allocate more money to the program, or reduce the amount per rebate?
  • Additionally, there are questions surrounding whether the rebates will extend to used electric vehicles or remain for new ones only.
• California’s Transformation and Future of EVs:
  • Electric vehicles and zero-emission cars are a critical part of California's transition away from gasoline-powered vehicles.
  • The future of the state’s EV rebate program depends on how the government handles this growing demand and the sustainability of the funding.

Listen to this episode to explore California's efforts to promote electric vehicles and how the rebate program is evolving with rising sales.

• Used Car Value Fluctuations: Over the past couple of years, the values of used cars have spiked dramatically, making it difficult to find reasonably priced used vehicles. This shift is also impacting new car leasing.
• How Used Car Values Affect New Car Leasing:
  • When you lease a new car, you pay for the difference between its new price and its predicted value after a few years.
  • Example: If you lease a $40,000 car for three years, and the car is expected to be worth $25,000 at the end of the lease, you're only paying for the $15,000 depreciation.
• Leasing Companies' Predictions:
  • Leasing companies estimate the car’s future value (residual value). If they guess it’s going to be worth $25,000, but the car is actually worth $30,000, that’s great news for you as the consumer.
  • You have the option to buy the car for the predicted value and potentially sell it for more, pocketing the difference.
• Don’t Walk Away from Equity:
  • If your lease is nearing the end, don’t just return the car and walk away. If the car is worth more than the residual value, you could keep the equity by buying the car and selling it yourself, or applying the equity to a new car purchase.
• Leasing Companies’ Mistakes:
  • Leasing companies have been underestimating the value of leased cars due to the unpredictable market, leading to higher-than-expected car values.
  • As a result, many cars are worth $4,000 more than expected, putting you in a position of equity.
• Changes in New Lease Predictions:
  • Leasing companies are adjusting their predictions on new leases, sometimes setting higher residual values due to the increasing market value of cars. This could lead to lower monthly lease payments.
  • Shop around to find a leasing company that’s offering better residual values for new cars.
• Trade-In vs. Lease Turn-In:
  • When your lease is up, consider your options carefully. Instead of simply turning in your leased car, you can trade it in or use its equity towards a new vehicle.
  • Don’t let the dealer absorb the equity without offering you credit for it towards your next car deal.

Key Takeaways:

• Be mindful of your car’s residual value at the end of the lease.
• Check if your leased car’s value is higher than expected, and use the equity to your advantage.
• Shop around for the best deal on new leases, as leasing companies are adjusting their residual values based on market changes.

Overview:

• Discussion on the recent closure of American Car Center, a subprime auto lender, and the potential consequences for car buyers who paid off their cars but never received their titles.
• What to do if your dealership goes out of business before you get your title.

Key Points:

• American Car Center closes its doors, affecting 20,000–100,000 vehicles with potential title problems.
• The dealer sold cars with in-house financing (buy here, pay here), but customers only receive their titles after the last payment.
• The dealership’s closure leaves many buyers without the title to their vehicles, and the title problem can persist if the dealership goes bankrupt or is sold to another company.

What You Can Do:

• If your dealership goes out of business while you’re still making payments, seek legal advice immediately.
• File for a court order title, magistrate title, or civil lien title with your state’s titling division to claim ownership.
• Some states have a victim's restitution fund, so acting quickly can help you secure your title before the fund is depleted.

Why This Is Important:

• The closure of a dealership like American Car Center, which had 40 dealerships across 10 states, creates a ripple effect, leaving thousands of vehicles at risk of having unresolved title issues.
• With 288 employees terminated and no one available to process titles, buyers face an uphill battle to recover their titles.

Action Steps for Affected Buyers:

1. Contact an attorney or legal professional for advice.
2. File a magistrate title or civil lien claim as soon as possible.
3. Contact your state’s titling division and inquire about any victim restitution funds.
4. Be proactive—start the process immediately to avoid losing your car and payments.

Links:

• Methods to get your title if affected by a dealership closure.

Topic Overview: Explore the latest trends in used car prices, the impact of recent market shifts, and what this means for buyers and owners alike. Are used car prices really going up? Is now the time to buy, or should you hold off? Find out in this in-depth discussion.

Used Car Price Trends:

• Used car values have dropped slightly from pandemic highs.
• According to Cox Automotive, wholesale used prices rose by 4.3% from January to February 2023, marking the highest month-to-month increase since 2009.

Implications for Used Car Owners:

• If you own a used vehicle, its value is likely higher now, which could make it a good investment.
• However, be cautious: repairs, replacements, or damage could be costly, so ensure your insurance coverage matches your vehicle’s value.

Considerations for Used Car Buyers:

• A newer model may not be much more expensive than a 2-3-year-old car.
• High monthly payments are common due to rising interest rates.
• Weigh the costs of maintenance and repairs on used vehicles, as these may offset any potential savings.

New Car Purchasing and Financing:

• Average new car price: $46,000, with monthly payments around $1,000 for a five-year loan.
• Six or seven-year loans are available but not recommended; stick to four or five years if possible.

Leasing and Lease Buyouts:

• If your lease is ending, consider buying out the lease, as it might offer a better value than current used car prices.

Electric Vehicle Incentives:

• EVs may offer up to $15,000 in federal, state, and local incentives.
• These incentives could make EVs a more affordable option despite higher upfront costs.

Older Car Market:

• High-mileage, older cars (100,000 miles) are still pricey, often exceeding $20,000, resulting in monthly payments close to $500.

Engagement: Share your experiences! What are you seeing in your local car market? Are you planning to keep your current car longer or considering a new purchase? Let us know in the comments!